The government on Wednesday eased foreign direct investment (FDI) rules around Single Brand Retail Trade.

Analysts said existing brands will be able to offer a wider variety of products besides offering a holistic experience to consumers.

NEW DELHI: Premium handset maker OnePlus said it will avoid making any strategic investments based on shortterm opportunities offered by the government’s move to relax FDI rule for foreign single-brand retailers, since it is wary that the norms may change again. Other brands like Oppo and Vivo, however, said the move will accelerate growth by stimulating investments and create more job opportunities.

“Given that regulations are still evolving and may change further soon, we will continue to make strategic investments based on our long-term driven investment philosophy and not react to short-term opportunities,” Vikas Agarwal, general manager at OnePlus India, said in a statement.

He though said the new rules will allow OnePlus to explore new possibilities and also help the company expedite its export plans.

The government on Wednesday eased foreign direct investment (FDI) rules around Single Brand Retail Trade (SBRT) by allowing exports and contract manufacturing to be counted in the mandatory 30% local sourcing norm over a period of five years. The government also allowed foreign single brand companies to sell directly via webstores, irrespective of a brick-and-mortar store presence.

Analysts said existing brands will be able to offer a wider variety of products besides offering a holistic experience to consumers.

Navkendar Singh, associate research director at International Data Corp (IDC), said the latest move is aimed at positioning India as a favourable destination for foreign brands, that they can make in India, sell in India and export as well.

“This [change in norms] will accelerate growth by stimulating investments and create more job opportunities. Consumers will stand to benefit with access to a wider variety of products online and offline,” Sumit Walia, VP-product and marketing at Oppo India, said.

Nipun Marya, director-brand strategy at Vivo India, said the decision will promote foreign investments in manufacturing sector, and will create many jobs in India, in the long run.